Recently, various information about the yen's interest rate hike has been overwhelming. On Monday, U.S. stocks opened with a high sell-off, and the entire cryptocurrency market also fell, with BTC dropping 4900 points. The sudden sell-off at 10:30 last night was indeed a bit tricky, but this is not a very marketable event, nor is it the starting point and signal for the market to continue collapsing due to the yen's interest rate hike.
The entire market has a special effect that I call early information market digestion, which means that capital will sell off in advance. On the day the news is announced, everyone is bearish, and capital buys in; this is the market. Regarding the fixed nature of the yen interest rate hike, there is definitely early information market digestion.
Additionally, looking at the daily chart, the situation is not as bad as imagined. Combined with indicators, a rebound can happen at any time. The lower Bollinger Band supports it, historical support for the K-line is also there, KDJ is at the bottom, and MACD is in the process of bottom divergence. Although the fast line DIF is pressed down and the trading volume is still maintaining a bearish release, pay attention that the previous part is a multiple growth, with KDJ at the bottom and Bollinger support and historical K-line support present, this situation is due for a correction. If the MACD forms a dead cross and declines, then the daily K-line will inevitably penetrate the Bollinger support directly, which means that last night's daily situation should have pierced through the Bollinger support and approached the 83600 point of December 1, but it did not happen. Moreover, the MACD had two previous fast line DIF bends that led to market corrections, but KDJ is in the process of touching the top and reversing. The trading volume also increases the probability of a rebound.
Overall, the market has not collapsed. To put it simply, as long as the support at the bottom remains and the bottom continues to rise, I am still optimistic about the upward trend.
By 10:30 PM at the latest, there will be an answer. The last two high points were all problematic when the U.S. stock market opened at 10:30 PM.
